By ALICIA FEYERHERM
Tiger Media Network
Hays City Commission hosted a hearing and then approved an ordinance establishing an area of 10th and Walnut as a Rural Housing Incentive District (RHID) during Thursday’s commission meeting.
Local developer and owner of Turnkey Properties, Mike Graham, has proposed two 24-unit apartment buildings for the area with six two-bedroom units and 18 one-bedroom units each.
“Mike Graham has successfully redeveloped other areas in the city such as 7th and Oak and 4th and Fort,” Deputy City Manager Collin Bielser said.
RHID is a state program aimed to aid developers in building housing. RHID captures the incremental increase in property tax for up to 25 years and uses that revenue to reimburse the developer for eligible costs such as water mains, site preparation and gas and electrical services.
“It can’t be used for the living units or the building itself, but everything associated with that street: lighting, sewer, et cetera,” Bielser said.
For this project, the projected eligible costs are $692,500.
The City currently owns the property, but once the RHID is created, the property will be sold to the developer for $1. However, the City will have the right to repurchase the property if that development does not occur.
Commission Mason Ruder was supportive of the RHID.
“We’re so lucky to have people like you guys here in our community doing this for us,” Ruder said. “You’re taking this risk and investing it right back into the community and I’m excited to see once it goes up.”
Mayor Sandy Jacobs said community members have expressed approval of this project.
“Citizens are really excited to see this project get started and they’re anxious for that whole area to improve and change,” Jacobs said.
The Commission approved 3-0 with Vice Mayor Shaun Musil and Commissioner Reese Barrick absent.
The USD 489 Board of Education and the Board of County Commissioners do have an opportunity to draft a resolution in opposition of the RHID.
However, If all entities approve, the RHID will go into effect on October 29. The developer must commence vertical construction no later than April 1, 2025 and substantial completion must be completed no later than 30 months after construction begins.
Other actions taken at the meeting included:
- Awarding of a $3 million bid to APAC-Kansas for the reconstruction of 13th Street from Canterbury Drive to Commerce Parkway
- Approval of 27th and Main Development Project for stormwater and street projects
- Authorization of Community Development Block Grant between the City of Hays and the Kansas Department of Commerce
The next City Commission meeting will be at 4:00 p.m. on October 10 at City Hall.
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